new pattern ~ Economics XI Term p en two goods are consum, 1, Wher satisfaction, itis referred oSener ,) Joint demand BB oes «composite demand Derived demand one of the above ( ian rnioh of the followingare Wierived demand? B Sre'an example {a) Car and Petrol (b) Tea and {e) Building and Brick Coffee (d) None of these 4, with rise in price of good X, demand for good Y also increase, then how these goods are related? {e) Substitute goods (p) Complementary goods (c] Inferior goods {g) Giffen goods (0, Complementary goods are always demanded at the same proportion. Choose from the options below. (a) True (b) False (c) Partially true (d) incomplete statement |, With rise in price of good X, demand for good Y also decrease, then how these goods are related? (a) Substitute goods (b} Complementary goods (c) Inferior goods (d) Giffen goods . Law of demand was propounded by (a) Prof. Adam Smith \b) Prof. Alfred Marshall (c) Prof. Gossen (@) Prof. Pigeou Law of demand is an «++. '8) qualitative quantitative 2) Both (a)and(b) 4) Neither(a)nor(b) a eemenneneniai a) 101 14, Law of demand assumes other factors constant in a given demand function. Choose from the options below. (a) True (b) False (c) Partially true (d) incomplete statement 15. Which of the following statements are true? (a) Market demand curve is the vertical ‘summation of individual demand curves (b) Market demand curve is the horizontal summation of individual demand curves (c) Market demand curve is steeper than individual demand curves (d) None of the above 16. Movement along the demand curve is also known as .... (a) Change in demand (b) Change in quantity demanded {c) Change in demand of related goods (d) None of the above 17. Shift in the demand curve is also known as. {a) Change in demand ~ (b) Change in quantity demanded {c) Change in demand of related goods (d) None of the above— ae 24, from poi movement Point 4 ite Theown a “hy Jow: Choose from the options be jupand (iv) tetera uunanat) c) iden in 28. Slope of demand curve is oq" (a) ” io) x a0 Ao n0 Ws ae ar 21. Which of the following is/are 4 components of change in quantity demanded? (@) Increase in demand Decrease in demand (iii) Contraction in demand (iv) Expansion in demand Choose from the options below. (a) (i)and (iii) (b) (ii)and (iv) (c) (anati) (d) (iii)and{iv) 22. Non-linear demand curve is drawn as (2) downward sloping straight line (©) upward sloping straight line (c) rectangular hyperbola (d) None of the above 23. Slope of a downward sloping demand curve is (a) increasing (b) decreasing (c) constant (d) infinity 24, See the diagram given below, —_ y Dies: Demand Curve jon in the quantity q, ansion in Y de Per ction in GUANtY don ht ‘ase in demand "eq (c) In eee in demand {g) Decreas diagram in Q. fer to the 2 No, 25. ne fnovement from point 42 Be acai the quantit ansion in Intity dmg, iy pana ction in quantity demang i id Increase in deman id Decrease in demand 26. See the diagram given below, Y Quantity demanded (in unis) Shift in demand curve from Dio] is know as (a) Expansion in the quantity demand (b ue ontraction in quantity demand to the diagram given in QNs ' demand curve from DDw!in price of substi crease tute i te for the concerned goodwit right tothe ria yan tne at ent jownward along demand curve re upward along demand curve é he following are +N , Sigemand? Semel te” goods (b) Addictions (a) Neither (a)nor(b) ; af ten " potniavend(b) the correct sequence of option: 1a by matching them with one of column T. Poel Column tt gare 4 Normal (i) Tts demand has aie inverse relation with income of the : consumer, j Inferior (ii) Tts demand is not affected by change i ee price. a 7 Gifen (i) Nts demand is inversaly © foo related with spre 5 Necessities (iv) Its demand is directly c Oe INY elated with its price. oa Bco AB Cap (a) (i) (i) (ii) (iv) (b) (ii) (iii) (iv) (c) iti) (iv) (ii) (a) (iii) (iv) (i) 2 Identify the correct sequence of dternatives given in column Ilby matching them with respective terms in 33. Write the correct pair na ane Codes ReBooO (9) (6) GH) tiv) Ga (od (Gir ti tiv A Bcc (b)0m) Gi) (0) Gd (6) (iv) Gaudi Column 1 Column tL A. Giffen goods 1K) Automotiiles B. Veblen goods (ii) Low quality bread C. Conspicuous (tii) Diamonds necessities D. Necessities (jv) Medicines Codes (a) A4i) (b) Bit) (c) Citi) (a) D4iw) 34. Law of demand is based on which of the following laws? (2) Law of indifference curve (b) Law of diminishing marginal utility (c) Law of variable proportion (d) None of the above 35. In case of inferior goods like bajra, a fall in its price tends to {a) make the demand remain constant (b) reduce the demand (c) increase the demand (d) change the demand in an abnormal way be normal for one person Ct Cee alpen ee Lis eee ceuoce Ram optionspattern ~ Economies xr 4s ons nd tb) west ree demand elastic derang (Hi) Demand curve for a perfectly ae seaig inelastic demand is vertical line gone of Parallel to Y-axis, oye diagram below. (ii) Demand for luxury goods is es ‘ highly elastic, + (a) (anatin (b) (iand (ini) : (0) (andi (4) Oniy (ii) ' 53. Which of the below statement is true | 8 about elasticity of demand? (a) The units used to measure price but not to Measure quantity (b) The units used to measure price aswell as ‘Quantity x quantity (c) The units used to measure quantity but not ; is to measure price Baer, ueinatid (d) Neither the units used to measure price nor li Satie the units used to measure quantity jastic . weiteTY elastic demand 54. If the price elasticity of demand is 2, . perfectly inelastic demand then a 10 per cent increase in the price @ oe results in a... in its ifs 10% sise in price of good X leads to quantity demanded. i (i fall in its quantity demanded, its (a) 5% Jpsicity of demand is (b).10% ig elastic (b) inelastic (c) 20% itary elastic (d) perfectly inelastic (d) 25% (eh unitary Choose the correct pair. 55, The price elasticity of demand ranges ColumnI Column IT (a) -1t00 y inelastic i) Horizontal (b) Oto A pe ae ft straight line (c) 0 to infinity ea i) (d) Negative infinity to infinity it i iti) Rectangular * * fem curve hyperbola 56. If the price elasticity of demand ranges _ Senne CNS ee i ween 0 to 1, demand is C. Perfectly elastic ye (b) elastic ‘a Adi) (b) B4ii) y) oil {d) None of the Which of the following statement ‘Ware not true about elasticity of demand? ; {Demand curve for a perfectly elastic demand is horizontal Parallel to X-axis.106 —_—— 5B. 11 9 good has mutuiple eubetitute qos Available, ite elasticity will be (@) eauni to pore (b) tows than one (©) PQUaItO One (a) revore than one 58. OF the given koods below, demand i# expected to be inelastic for {a) aicoho: {b) car {e) uniform (0) pizza 60. Ifa consumer spends larger proportion of his income on # good, its demand will be (a) elastic (b) inelastic (c) unit elastic (9) cannot de defined 61. The demand for food is more elastic under which group of people? (a) Who has low level of income (b) Who has moderate level of income (c) Who has high level of income (cd) Who lives in urban areas 62. Elasticity of demand for good X ishalf 66. Assertion of elasticity of demand for good Y. If 10% fall in price of good Y leads to 20% rise in its quantity demand, what will be the elasticity of demand of good X? (a)2 (b)1 (c) 0.5 (d)0 63. Which of the below statements is/are true? i) Price elasticity of demand for : eal goods is higher than — inferior goods. None cose New Pattern ~ Economie, — to 15% rise in price, “ ae from 100 to 80 nae ety of demand wil by apt % last (o)133 leg tat > { price elasticity of demand ig & Hath in price of good leads ta ina’! lh demand by inet (a) 10% (15%) (eh 20% i Assertion-Reasoning MCOs Direction (Q.Nos. 66 to 70) There oy, two statements marked as t and Reason (R). Read the si choose the appropriate option from thet options given below (a) Both Assertion (A)and Reason Rap, and Reason R) is the correct voters, Assertion (A) . (b) Both Assertion A) and Reason Rare, but Reason (R) is not the correct explanation of Assertion (A) {c) Assertion (A)is true, but Reason() (d) Assertion (A)is false, but Reason Rjigny Assertion (A) Demand for durable higher elasticity of demang Reason (R) Demand for durable gag be postponed once they are : Reriacited at prescii 67. Assertion (A) Demand curve shows inverse relation between own price di _ good and its quantity demanded. Reason (R) Law of diminishing ran _ consumer gets lesser satisfaction for each additional units consumed. Choose from | (a) (iand(ii) (c) (iand (iii)q f my on (a) Ona straight-line js ard sloping demand curve #ovity of demand below the midpoi ,nd curve is more than pr int (R) On a linear dem, ey of demand varies fren out¥®) een stion (A) A commodity which can gA* cto several use, is price inelastic, n (R) As price falls, number of payers increase in the market. sed MCOs a jon Read the following case study yet wer questions 71 to 75 on the A ofthe same. as n0 close substitute and moreover, a jd has to share a negligible part of his budget. Therefore, even in spite of wa in price of salt, its demand will not sdected. ; cyever, demand for a particular brand of paste is comparatively more elastic as care many brands of toothpaste available semarket, so the consumers can switch ato any other brand in case of hike in the ieofa particular brand of toothpaste. I. The elasticity of demand of salt is (a) elastic (b) inelastic : bs (0)perfectlyelastic —(d) perfectly netae makes demand for (a) Necessity (b) Non-availability of substitut (©) Both (a) and (b) (A) None of the above so oe mal ‘gem™ of ©M zero to Nature? tis not a necessity of life N)Ithasa competitive marke *) Consumer has a preferenc {9 Allof the above 107 14, Which of the dotegr Ot the following is nota nant of elasticity (0) Avalibity of substitutes mane? (b) Nature of the qood (c) Number of buyers in the market (4) Expenditure on a commodity 78. Assertion (A) Any good which has inelastic demand must be necessity of life Reason (R) Elastic goods are highly Price sensitive in nature as compared to inelastic goods Alternatives (a) Both Assertion (A) and Reason (R)are true and Reason (R)is the correct explanation of Assertion (A) (b) Both Assertion (A)and Reason (R)are true, but Reason (R)is not the correct, explanation of Assertion (A) (c) Assertion (A)is true, but Reason (R)is false (d) Assertion (A)is false, but Reason(R)is true Direction Read the following case study and answer questions 76 to 80 on the basis of the same. Year 2020 has witnessed many ups and downs, there were natural calamities around the globe, political tensions and what not. The outbeeak of coronavirus pandemic had led to worldwide lockdown for several months. i il, 2020. The world almost stopped during April, India is also not untouched with the impact of Jost their jobs during this time,ee 406 77. People loose their jobs during the nationwide lockdown, how will this impact the demand curve for inferior goods? (9) Rightward shitt in demand curve (b) Leftward shirt in demand curve (c) Downward Movement along demand curve (4) Upward movement along demand curve 78. How should the demand be affected due to the relief package announced by the government? (a) Increase in demand (b) Expansion in quantity demanded (c) Decrease in demand (@) Contraction in quantity demanded 78. Demand for automobile industry decreased inspite of decreasing price during pandemic. This is referred to as (a) Contraction indemand (d) Exception of demand (c) Both (a)and(b) (@) None of the above 80. Assertion (A) Demand for medical equipments was high during the pandemic making its demand highy elastic. Reason (R) When more goods are demanded even at a higher price, demand becomes elastic, Alternatives ‘ (2) Both Assertion (A) and Reason(R)are true and Reason(R)/s the correct explanation of Assertion (A) . (b) Both Assertion (A)and but Reason(R)i explanation of A (c) Assertion (A) is tr (d) Both are false Direction Read 1 and answer questio basis of the same. Demand for gold is fact around the wo alone comes to aroun CBSE New Pattern ~ Economie, dey, ey, Y mine company located jn Hut god isthe only company ining a ces gold by mining which prodvce oid ore. Over the processint ns have recycled an averag, 166 tons of gold per annum. 2008, demand for golq , ctober, 2008, dema rations like ese Akshay, 7, vas the main factor for this vast increae cd. derive of gokd started falling from, 19 of December, 2008 by 83%, followed by om, January, 2009. In March, 2009 impor 4 122010, demand went up and the Price a, went up. Indian people tend to investin gy because of culture and belief, so the dem always remains elastic, In 2011, Indians enjoyed a rapid increase, income, which made the Indians to conga, more and more gold even though the pas was increasing. nee Certain non-price factors like income of, toate prises of related goods ace taste and preferences, population and expected future price of the good also efi the increase in the price of gold. Later on, in the year 2012, platinum, ich’ a substitute good for gold started from % 35,000 to % 22,000 which made the tis the nature of demand cunel in Indian market? Upward sloping (b) low (a) Either aor!1, we pattern ~ ECONOMICS XI Crerm 1 the various det gt Be i Ind nants whe jice in India except its o of e of consumer WN price? 1) 170°, of related goods e Oeste and preferences ye ye above: eon will be impact on demand é wreold jewellery if government ® j for Byes heavy tariff on import of gold? mfovernent upwards B® ovement downwards 7 Sirts to the right ie gts to the left ‘on (A) Constant demand for ig during pandemic shows the strong ference of Indians for gold. ns (R) Gold is demanded in India for investment and jewellery porposes- ives ig) Both Assertion (A)and Reason (R)are true and Reason (R) is the correct explanation of assertion (A) (p) Both Assertion (A)and Reason(R)are true, put Reason (R)is not the correct explanation of Assertion(A) {¢) Assertion (A)is true, but Reason (R)is false (g) Assertion (A)is false, but Reason(R)is true jirection Read the following case study sdanswer questions 86 to 90 on isis of the same. ion quickly will American business #COVID-19 lockdowns end? indionwide survey Was conducted winesses to measure firms’ expect ‘nt their re-opening and future ¢ ‘suality of firms in our sample ¢ “om within days of the end of le g *ticions, but a sizable minority ¢ ty thei reopening. While he: covin 19 case sae such as pie workers, do explain the iar rc gd 1 ected duration of re ie 6 and lockdown, Bilated: conta: these vatables have hte or na Intentions, “1 Powtlockdown reopening Instead, almost partially open sseiser tld dt aoe ropceang tie depend on the reopening of related esses, including customers and suppliers. Qwners expect demand to be one-third lower oso before the crisis through autumn. ‘irms with more pessimistic expectations about demand onc a later reopening. ‘Using an instrumental variables strategy, we estimate the relationship between demand expectations and reopening. ‘These estimates suggest that postlockdown delays in reopening can be explained by low levels of expected demand. ‘Source: Harvard Business School Working Knowledge Baker Library. 86. Why demand was low even after the lockdown restrictions were lifted in America? {a) Fall inincome ~ (b) Lack of availability of factors (c) Fear of corona virus outbreak ‘(d) Both(a)and(c)